8.	EARNINGS (LOSS) PER SHARE - COMMON STOCK (“EPS”)

The Company’s basic EPS is calculated using net loss available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible preferred stock.

The reconciliation of the numerator of the basic and diluted EPS calculations was as follows for both of the following

three

and

six

month periods ended

June 30, 2017

and

2016:

	Three Months ended June 30,						Six Months ended June 30,
	2017			2016			2017			2016
Basic Numerator:

Net loss	$	(1,789,329	)	$	(1,375,489	)	$	(3,145,516	)	$	(2,538,703	)
Convertible preferred stock dividends		(200,625	)		(200,625	)		(401,250	)		(401,250	)
Net loss available to common stockholders	$	(1,989,954	)	$	(1,576,114	)	$	(3,546,766	)	$	(2,939,953	)
Basic Denominator		6,359,974			5,523,072			6,228,197			5,516,726
Per Share Amount	$	(0.32	)	$	(0.29	)	$	(0.57	)	$	(0.53	)

The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the net losses for the

three

and

six

months ended

June 30, 2017

and

2016:

	Three Months ended June 30,				Six Months ended June 30,
	2017		2016		2017		2016

Preferred stock		5,416,667		5,416,667		5,416,667		5,416,667
Stock options		35,706		13,040		44,580		3,495
Warrants		3,004		-		3,336		-
Total		5,455,377		5,429,707		5,464,583		5,420,162

Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares:

	Three Months ended June 30,				Six Months ended June 30,
	2017		2016		2017		2016

Stock options		218,761		215,000		218,761		229,583
Warrants		1,212,163		1,704,629		1,212,163		1,704,629
Total		1,430,924		1,919,629		1,430,924		1,934,212